Tom Fitzgerald has a small retail clothing business called Fitzies Fashions Pty Ltd. The balances in the firms general ledger on 30 June 2007 were:

DR - Inventory (at cost) 32 800 Accounts receivable 20 000 Cash at bank 110 000

CR - Capital, T. Fitzgerald 131 400 ,Retained profits 10 000 , Accounts payable 21 400

The business rents its shop space, shop fittings and equipment. All inventory is bought on credit at a trade discount of 12.5% off listed prices, and sold on credit at a markup of 100%. Suppliers allow the business a cash discount of 2.5% for prompt payment, and 5% is given to customers who pay within the allowed credit period. Transactions for the year ended 30 June 2008 were as follows:

(i) Purchased inventory on credit with a list price of $100 000. (ii) Received credit notes from suppliers to the value of $800 for inventory which was damaged on delivery and returned. (iii) Sold inventory for $160 000. (iv) Inventory which had been sold to customers for $1 000 was returned. This inventory was undamaged and suitable for resale. (v) Paid cheques totaling $68 250 to suppliers after deducting $1 750 for cash discounts. (vi) Received cheques amounting to $123 500 from debtors after allowing $6 500 for cash discounts. (vii) Paid various operating expenses (including rent) for the year by cheque $30 800. (viii) A stocktake at the end of the year revealed that the cost of inventory on hand was $39260. (ix) Tax payable for the year is estimated to be $15 000.

Required For both a perpetual inventory system and a periodic inventory system, prepare -

(a) entries in general journal form to record the above transactions

(b) closing entries

(c) a balance sheet for the year ended 30 June 2008